Emerging Markets

Is This Rally for Real?

Investors' hopes that the recent runup will continue are likely to be dashed.

The iShares MSCI Emerging Markets ETF has rallied 7% in the past two weeks, raising hopes that a new bull phase is about to begin. Is it?

As reflected by the rise of the ETF (ticker: EEM), it's the most sustained emerging-market gain since 2013. In the roughly 14 months prior to the rally, these markets fell by more than 10%, versus developing markets' 20% gain. The Brazilian real, Indonesian rupiah, Indian...